[Photo by Park Hyung-ki]
Balaan, a Korean high-end fashion shopping platform, is aiming to achieve 1 trillion won ($824 million) in total transactions and rank No. 2 in the world of online luxury shopping by the end of this year, riding on the mix of Korean love for luxuries and strength in ICT.
“We have amassed millions of customer data which will help the platform expand beyond the Korean borders,” said Choi Hyung-rok, CEO of Balaan, in an interview with the Maeil Business Newspaper.
Balaan posted 315 billion won in gross merchandise value (GMV), up sharply from 51.2 billion won in 2020 and 25.6 billion won in 2019.
If it triples in GMV this year, it can ascend to No. 2 in global rank in online luxury platform.
The top online luxury fashion retail platform is currently British-Portuguese company Farfetch, which is said to be tapping entry into the mushroomed luxury market in Korea.
Choi is unworried about foreign foray, with Balaan commanding 6.3 million in monthly website usage and edge in data on consumer shopping patterns in Korea.
Online luxury retail platforms where customers can buy designer items at a cheaper price have been hugely popular. Based on this success, Balaan plans to enter the Japanese and Southeast Asian markets in 2023.
Balaan has a process of authenticating luxury goods imported from foreign companies to ensure reliable goods. The company plans to offer NFT services to back authenticity of luxury items.
Balaan also envisions to add offline shops for hands-on experience for consumers.
Choi also hinted at the possibility of expanding its business to include wine, household items, and artworks.
By Kang Young-woon and Susan Lee
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]